On Thursday, the shares for the Asian market skidded after some moderate declines seen on Wall Street. Anxious investors mounted this over the possibility for China and the U.S. not reaching an appropriate trade deal with the New Year about to start in a month. Hong Kong was the one to lead this region with the benchmark index for Hang Seng at -1.57 % which was a fall by 1.6 percent of its original. The index for Shanghai Composite was market at -0.25 percent while losing 0.4 percent. On the other hand, Nikkei 225 from Japan was reported to be at -0.48 percent by giving up 0.8 percent.
A report published recently suggested the preliminary trade pact for “Phase 1” might not yet be completed for the year as the negotiators continue wrestling over the differences. This report published by Reuters mentioned an unnamed official from Trump administration as stating that it was highly possible that a win-win deal for the countries might not be on the cards for the year.
This particular comment being cited by such a popular news platform, Reuters, has seriously spooked the investors that had been already twitching in context with the possible denial for the talks with resolutions set by the U.S. Congressional. These talks involved an expression of support for the Hong Kong based human rights where months have passed on in terms of political protests.
China eventually condemned the moves made by the lawmakers in the U.S. that provided their support to the protestors created havoc in Hong Kong. Jeffrey Halley from Oanda mentioned in his comment that Asia is continually nervous with regards to the existing state of the trade play for weeks, where the ex-China equities have been underperforming. The price for early action this morning might suggest that a cautious walk all the way to an exit might be turning unruly.
Investors are now hoping that the two biggest world economies should work together to crack a deal before the latest & more damaging trade tariffs come into play starting 15th December on Chinese imports worth $160 Billion. These exaggerated duties will cover things such as laptops, smartphones, as well as similar consumer goods. Beijing wants the Washington officials to initially agree for broader rollbacks on the existing tariff for Chinese goods.
On the Wall Street stocks, the technology stocks faced the heaviest amount of loss along with the industrial stocks and communication services.